Here are four reasons why Altimeter Growth (AGC) could be the next number one short squeeze:
Reason #1) Grab: Grab is the #1 Super App in Southeast Asia. Grab is referred to as a “Super App” because it has so many functions. It offers the services of Uber, DoorDash, PayPal, Venmo, and more. Grab is going public at a $40 BILLION valuation through the SPAC $AGC. $AGC (Altimeter Growth Corporation) confirmed on 10/18/21 in their Form F-4 filing with the SEC that they will be completing their merger with Grab in Q4 of 2023. When the merger is complete, $AGC shareholders will become Grab shareholders.
Reason #2) A Spac Without The Risks. $AGC is a SPAC, but without the risks of being a SPAC. You may ask – is there a risk of the merger not being completed? No, this is a unique case in the SPAC world in that the Grab CEO has majority voting control at 60%. Do you think he is going to vote against his own company going public? No. This merger will go through because of this. Another concern people have with SPACs is – what if the shareholders dump as soon as the merger is completed? That can’t happen here because of the structure of this particular SPAC. There is a 3 YEAR LOCK UP PERIOD. This means the big guys can’t dump on retail for 3 years…so no worries there. The current price is $12 even, meaning that the maximum downside from here is 20%, due to the fact that SPACs redeem at $10 per share. This means the price can not go lower than $10, so there is great risk/reward here.
Reason #3) The Institutional Shareholders. The institutions are MAJORLY bullish on Grab/AGC and are NOT going to let this fail. The largest shareholders are…Morgan Stanley: 7,123,677 shares, Janus Henderson Group: 8,883,832 shares, and STAD MARC: 2,550,000 shares. Hedge funds that have opened new positions THIS MONTH ahead of the merger completion include…Fidelity: 60,554 shares purchased on 10/26. Belvedere Trading LLC: 35,095 shares purchased on 10/19. Bank of America: 494,799 shares purchased on 9/13 (okay, this one is from September, but you get the point).
Reason #4) THE SQUEEZE DATA. I know I know, everyone keeps saying they have found the next short squeeze…everyone is chasing the next GME or AMC. I know this isn’t GME or AMC but PLEASE HEAR ME OUT and allow me to explain why this is different. First off, 40% of the float is shorted (verified by S3, Fintel, Ortex, and Finviz), making it one of the most shorted stocks on the market right now. Additionally, and equally as importantly, the borrow cost is 15% and rising every day. This means it is getting increasingly expensive and hard for shorts to borrow shares to sell short in order to drop the price. BUT, here is the real key…nobody ever talks about the REASON short interest is so high. Shorts piled in because early this year, Grab reduced their revenue forecasts due to the pandemic. THEN, the pandemic subsided, and Grab is now expected to achieve record revenue and growth. SO, now the hedge funds who shorted due to the pandemic and reduced revenue forecasts are STUCK.
SUMMARY: There will be a massive short squeeze in $AGC when the catalyst comes in Q4. The catalyst is the merger with Grab being voted upon and successfully completed. Once they announce the merger, shorts are going to be forced to close. Current price: $12. Max downside: $10 since it is a SPAC. Upside: the moon. Excellent risk/reward profile, massive short squeeze potential, huge institutional shareholders, and ideal SPAC structure that avoids the traditional risks associated with SPACs.
This article was written by u/everythingcrypto2018.
